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10 Best Dow Dividend Stocks for 2011

1. Coca-Cola (KO - Get Report) sells syrups, concentrates and beverages worldwide.

12-Month Sales Growth: 5%
12-Month Net Income Growth: 21%
Quarterly Operating Profit Margin: 29%
Cash Flow Multiple: 16 (16% peer premium)
Analysts' Median Target: $69.23
3-Year Dividend Growth: 9%
Dividend Yield: 2.7%
Payout Ratio: 53%

2011 Catalyst: Coca-Cola has, arguably, the world's best brand, and it's expanding overseas. Third-quarter volume jumped 6%, with a 2% gain in North America and a 6% advance overseas. Eurasia and Africa volume climbed 12%. Pacific volume, including China, expanded 12%. Chinese volume itself rose 11%.

The beverage business is booming. Coke opened three new bottling plants in China during the quarter. Though not cheap relative to beverage peers, Coke is a fundamentally attractive stock, with a 27% return on equity in the latest quarter and a 14% return on assets. Of analysts covering Coke, 85% recommend buying its shares and 15% advise holding them.

Bullish Scenario: Stifel Financial forecasts that Coke's stock will advance 16% to $75.

Bearish Scenario: HSBC values Coke at $64, suggesting a marginal decline.

-- Written by Jake Lynch in Boston.

To see these stocks in action, visit the 10 Best Dow Dividend Stocks Portfolio on Stockpickr.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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SYM TRADE IT LAST %CHG
CVX $89.13 -1.60%
HPQ $30.25 0.00%
JPM $68.01 0.00%
KO $40.54 0.25%
MRK $56.99 0.00%

Markets

Chart of I:DJI
DOW 17,568.53 -127.94 -0.73%
S&P 500 2,079.65 -12.01 -0.58%
NASDAQ 5,088.63 -48.8540 -0.96%

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